What constitutes the carrying value of a non-interest-bearing note?
A)the amount due at maturity
B)the present value of the amount due at maturity
C)the amount due at maturity less interest recognized to date
D)the present value of the amount due at maturity less interest recognized to date

Question

Quizplus · Accepted Answer

The carrying value of a non-interest-bearing note is the present value of the amount due at maturity. This is because the note does not accrue interest over time in a traditional sense, so its value is calculated based on the discounted future payment(s).

What Constitutes the Carrying Value of a Non-Interest-Bearing Note